What is underemployment? Why should we be concerned about it in India? Discuss any four measures the government can take to address the problem of underemployment and unemployment in the country.
Generated by claude-sonnet-4-6 · 2026-06-26 13:22 · grounding rag
Model Answer
Underemployment (also called disguised unemployment) refers to a situation where people are apparently working but are doing less work than they are capable of, or their work contributes little to output. For example, if 4 people work on a farm where only 2 are needed, the extra 2 are underemployed.
Why we should be concerned: In India, a large proportion of the population depends on agriculture, which suffers from considerable underemployment. This leads to low incomes, poverty, and wastage of human resources.
Four Government Measures:
- Irrigation facilities – Constructing dams, canals, and wells enables farmers to take a second crop, generating more agricultural employment.
- Rural roads and storage – Better roads and cold storage facilities allow farmers to transport and sell produce, creating jobs in transport and trade.
- Cheap agricultural credit – Banks providing loans at low interest rates help farmers buy seeds, fertilisers, and equipment, improving productivity and employment.
- MGNREGA 2005 – This Act guarantees 100 days of paid employment per year to rural workers. If the government fails to provide work, it pays an unemployment allowance.
Source: Chapter 2 – Sectors of the Indian Economy, "How to Create More Employment?"
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Explanation
- Underemployment definition must be stated clearly — examiners look for the idea that people seem employed but contribute little.
- The concern for India should link to agriculture's dominance and poverty.
- For the four measures, pick ones directly from the textbook (well, dam/canal, roads/storage, credit, MGNREGA). Avoid vague points.
- MGNREGA with the detail "100 days" is a high-value factual point — always include it.
- Keep each measure to one crisp sentence; don't elaborate beyond what's needed.